Why ACH Transfers Are Great for B2B Payments
by Arina Smith Finance 27 June 2018
Looking for the best options for taking B2B payments at your company?
You’re not alone! Did you know that a survey showed that 33% of businesses have very little loyalty to their payment processor and are unhappy with the service?
Maybe you’ve just landed your first client or you’re looking for a more flexible option to cut down on your number of payment processors.
Read on to learn 6 reasons that ACH bank transfers are a great option for B2B payments!
1. Security:
ACH transfers have an advantage of being one of the safest and reliable systems of payment available.
This is especially important for businesses that rely on the system for B2B payments which can sometimes equal several thousands of dollars at a time.
In case of fraud or error, ACH networks are protected under federal law to assure that your money doesn’t fall into the wrong hands.
2. Flexible Transactions:
ACH bank transfers fall under two categories: direct deposit and direct payment.
Direct deposit is typically used for payroll, while direct payment is used to transfer funds for a payment, like an invoice. For B2B payments, you’ll typically use direct payment transfers.
Within these two options, you can choose from ACH Credit and ACH Debit payment options.
Debit payments take money directly from a bank account, while Credit payments allow you to transfer money between multiple bank accounts.
3. Easy To Set Up:
In order to process ACH bank transfers, you’ll need to set up an ACH merchant account. This is similar to a debit or credit card processing account.
You can easily choose from a number of providers and then process payments via check scanner, virtual terminal, or online at your business website.
4. Inexpensive:
ACH processing is one of the least expensive payment options for businesses.
These transfers avoid card service fees by directly using bank routing information and account numbers.
Transfer fees are often less than a dollar for senders and can be free for the receiver. Check with your bank for more information on your specific account!
5. Fast Processing:
Compared to the speed of waiting for a check or money order to arrive in the mail, ACH payments are much faster. They usually take 1-3 business days.
While this may seem slower when comparing ACH to options like PayPal, but consider the time that it takes for PayPal payments to go into your business bank account.
6. Little Oversight Necessary:
Last but not least, ACH B2B transactions require little interaction.
You can set up scheduled and recurring invoices to and from clients so that your cash flow is organized.
Unlike wire transfers, there is no human intervention at the bank to complete transactions and you don’t need to go through multiple invoices and transfer steps like you would in PayPal or Stripe!
Are ACH Bank Transfers Right for Your Business?
These 6 benefits of ACH bank transfers demonstrate the number of reasons that ACH makes for the most convenient payment methods for B2B companies.
Whether you’re starting a business from home or managing a large team at a corporation, a solid payment method should be first and foremost for your clients and customers.
What payment method are you currently using at your business? What issues do you have with it? Let us know in the comments!
Looking for more tips on how to make your business run smoother? Our small business blog covers topics ranging from business development to finance!
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